Glossary

It is the difference between the calendar year in which the insurance begins and the calendar year of the insured’s birth.

The assets covering the technical reserves are those assets of the insurance company that serve to cover the future obligations of the insurance company arising from insurance contracts, as well as possible losses in respect of those risks related to carrying out insurance business for which the insurance company is obliged to set aside funds for technical reserves.

An authorized actuary is a person who holds a permit to work as an authorized actuary from the Insurance Supervision Agency.

is a special discount included in the price list, given to an insured who has had no claims during a certain insurance period, or where the ratio between the premium paid and the claims paid is favorable to the Insurer.

The capital of the insurance company consists of core and supplementary capital and is calculated in the manner established under the Law on Insurance Supervision.

a reduction of the insured sums due to the cessation of premium payments after a certain period of time has passed

If the owner of the motor vehicle changes during the term of the insurance, the rights and obligations under the insurance contract pass to the new owner until the end of the current insurance period

According to the Law on Compulsory Traffic Insurance, the owner of a motor vehicle is obliged to notify in writing the insurance company with which they have concluded a motor third-party liability insurance contract of any change in the registration data relating to that motor vehicle, within 15 days of the date of the change.

The first step in the claims process is the insured’s notification to the insurance company that damage has occurred. The damage should be reported immediately or as soon as possible.

Classes of insurance (types of insurance products) – insurance business may be carried out within the following classes of insurance:

Non-life insurance:

– Insurance against the consequences of an accident,

– Health insurance,

– Motor vehicle insurance (casco),

– Rail vehicle insurance (casco),

– Aircraft insurance (casco),

– Insurance of vessels (casco),

– Insurance of goods in transit (cargo),

– Insurance of property against fire and natural disasters,

– Other property insurance,

– Liability insurance for the use of motor vehicles,

– Liability insurance for the use of aircraft,

– Liability insurance for the use of vessels,

– General liability insurance,

– Credit insurance,

– Guarantee insurance,

– Insurance against financial loss,

– Legal protection insurance,

– Travel assistance insurance.

Life insurance

– Life insurance,

– Marriage or birth insurance,

– Life insurance linked to units in investment funds

– Tontine insurance (an association of annuitants)

– Insurance for payment of funds,

– Annuity insurance for beneficiaries of pensions from compulsory fully funded pension insurance in accordance with the law on payment of pensions and pension benefits, and

– Annuity insurance for beneficiaries of pension benefits from voluntary fully funded pension insurance in accordance with the Law on payment of pensions and pension benefits

What the insured is entitled to claim from the insurer if an insured event occurs.

Where the insured, or insurance beneficiary, considers that the insurance company is not adhering to the provisions of the insurance contract, they may submit a complaint to:

1) the organizational unit responsible for resolving disputes within the insurance company;

2) the internal audit service in the insurance company;

3) the consumer protection organization; and

4) the Insurance Supervision Agency.

The Law regulates the protection of consumer rights and the conditions and manner of consumer protection. Some terms from the law:

• A consumer is any individual or legal entity that buys products or uses services,
• A service is any activity that is intended to be offered to consumers,
• Terms of sale are the conditions relating to the manner of paying the sale price of the product or the provision of the service in cash, in installments, by card, with discounts or in another way.

On the basis of the Memorandum of Cooperation signed on December 19, 2013 between the National Bank of the Republic of North Macedonia, the Ministry of Finance, the Agency for Supervision of Fully Funded Pension Insurance, the Insurance Supervision Agency and the Securities and Exchange Commission, as the regulatory institutions of the financial sector, a Coordination Body of the regulatory institutions in North Macedonia for financial education (hereinafter: the Coordination Body) was established. The purpose of establishing the Coordination Body is to encourage, plan and carry out activities aimed at raising the level of financial literacy of the population of the Republic of North Macedonia.

Competences of the Coordination Body

• encouraging cooperation between the competent institutions (regulators) in the field of financial education;
• launching initiatives to the competent institutions and bodies for the adoption of acts that will support the idea of financial education of the population of the Republic of North Macedonia;
• cooperation with schools and higher education institutions;
• drafting strategic documents, such as the National Strategy for Financial Education in the Republic of North Macedonia;
• defining and proposing joint financial education projects;
• reviewing individual projects that are to be started and implemented, and giving opinions on them;
• applying standards and recommendations in accordance with the internationally accepted principles of the G20, the OECD, the IAIS and other international organizations and institutions;
• organizing, conducting and evaluating surveys on the level of financial literacy in the Republic of North Macedonia;
• organizing meetings, workshops, seminars and other types of training in order to raise the financial literacy of the population of the Republic of North Macedonia; and
• promoting regional and international cooperation among all signatories in the field of financial education.

A new memorandum of cooperation in the field of financial education and financial inclusion was signed in 2019

The cooperation between the signatories under the Memorandum aims to raise public awareness of the need for financial education in the modern dynamic environment, as well as to recognize the benefits of financial inclusion. The Memorandum is expected to achieve the following objectives:

• Through an integrated vision, the implementation of educational projects and the joint efforts of the signatories, it is expected to contribute to raising the level of financial literacy of the population and, consequently, to improving the skills and ability to make informed financial decisions in practice;
• At the same time, the cooperation should make it possible to raise the level of financial inclusion by strengthening all aspects of the availability, usefulness and efficiency of financial services in the country and better information about them, as well as appropriate information about consumer rights in the financial sector. Strengthening financial education and improving financial inclusion should enable the optimization of the services offered by the financial system in order to support economic growth and social well-being;
• In addition, this memorandum encourages, plans and carries out cooperation activities at the regional and international level with other organizations and institutions in the field of financial education and financial inclusion.

It is drawn up in cases where an insurance contract is concluded but not all of the data required for the definitive conclusion of the contract is known.

“Cretan Agreement” according to the Law on Compulsory Traffic Insurance refers to the internal provisions adopted at the 26th General Assembly of the Council of Bureaux held on May 30 and 31, 2002, which entered into force on July 1, 2003.

The premium is determined on the basis of:

• The type and purpose of the vehicle,
• The technical characteristics of the vehicle (engine power, load capacity, engine displacement, number of registered seats, etc.)
• The type of insurance,
• The age of the insured,
• The amount of the insurance coverage,
• The number of claims reported in the previous insurance period,
• The duration of the insurance,
• Other grounds established by the MTPL Premium Tariff

the amount of the benefit corresponds to the sum of the amounts of the sum insured in the event of death and the value of the investment portfolio;

It is the amount of damage that is not covered by the insurance, even though the damage as such is insured. In essence, the deductible is a limitation, that is, a reduction of the scope of the insurer’s coverage, because part of the damage is covered by the insured themselves. In insurance with a deductible, a part of the risk remains uncovered and stays at the insured’s expense. The insured, in effect, bears a small part of the risk on their own account.

The density rate is calculated as the ratio of gross written premium to the number of inhabitants in the country.

Main objectives – better protection of consumers of financial products and services, restoring confidence in the financial system, harmonization of supervisory legislation taking into account the different interests of the member states and the different nature of financial institutions. Greater harmonization and consistent application of the rules by financial institutions and the EU market.

EIOPA’s main responsibilities are supporting the stability of the financial system, market and product transparency, and the protection of policyholders and members of pension funds. EIOPA identifies trends arising from the micro-prudential level, across borders and across sectors.

An insurance company can be established by domestic and foreign individuals and legal entities.

The expense ratio is the ratio between the costs of carrying out the insurance and the net premium.

It is the day indicated in the policy. For example: the insurance expires on March 10, 2019 at 24:00

Financial education is a process through which financial consumers, the insured and investors improve their understanding of financial products, concepts and risks by receiving information, instruction and objective advice, in order to

– develop their skills and confidence,

– become more aware of financial risks and opportunities,

– make good decisions,

– take effective action to improve their financial well-being,

– know where to turn for help

The inclusion of the population in the use of financial services and products

Financial literacy is a combination of financial awareness, knowledge, skills, attitudes and behaviors necessary to make sound financial decisions.

Begins and ends on the day and hour indicated on the policy

“Foreign motor vehicle” according to the Law on Compulsory Traffic Insurance is a motor vehicle registered outside the territory of the Republic of North Macedonia;

The “Solvency II” regulatory framework is based on three pillars:[3]

Pillar 1 – Quantitative requirements. This pillar covers certain quantitative requirements for insurance companies regarding the basis for determining and calculating technical reserves, determining and valuing the companies’ own funds, valuing balance sheet items, calculating the minimum capital requirement, calculating the solvency capital requirement, setting rules for investing assets, etc.

Pillar 2 – Qualitative requirements for the corporate governance of insurance companies, determining the principles of internal control and the risk management system, carrying out an own risk and solvency assessment, and establishing new principles of supervisory assessment.

Pillar 3 – Market discipline and reporting. The third pillar sets standards for greater transparency in the work of insurance companies, standards for financial reporting and disclosure of data, new rules for reporting to the competent supervisory authority, etc.

For travel of insured persons with motor vehicles in the member countries of the international Green Card system, in which the license plate is not proof of the existence of motor third-party liability insurance, an international Green Card is issued as proof of the existence of that insurance. This card is issued exclusively for vehicles with Macedonian license plates.

The international Green Card provides insurance coverage for damage caused to third parties and property when driving a motor vehicle abroad, that is, in the member countries of the “Green Card” system. This policy is a condition for entering another country with a motor vehicle with Macedonian license plates.
The period of validity of the Green Card is limited by the period of validity of the motor third-party liability insurance policy. Unlike the motor third-party liability insurance policy, and in the interest of legal certainty for injured parties, the Green Card insurance fully covers both of the stated days – the day on which the insurance begins and the day on which its validity expires.

The guarantee fund consists of the items that enter into the calculation of the capital of the insurance company, which consists of core and supplementary capital, calculated in accordance with the Law. The guarantee fund must not be lower than one third of the required level of the solvency margin.

Companies are obliged to:
– when handling a claim, communicate in a clear and understandable way and act in a timely, fair and transparent manner;
– publish on their website the list of required documentation and the forms for submitting a claim for compensation, by class of insurance;
– no later than 14 days from the submission of the claim for compensation, check whether the complete required documentation has been submitted with the claim and carry out an inspection and assessment of the damage/injuries;
– if the claim is not complete, the company must request in writing or electronically that the injured party complete the claim;
– the inspection of the damage is carried out in the presence of the injured party or their proxy, except in the case of an assessment of injuries (non-material damage) which can be established on the basis of documentation and without the presence of the injured party;
– after the inspection, the assessor is obliged to draw up a record on a prescribed and printed form, that is, a finding/opinion, which contains all the data established during the assessment. The record for material damage must be signed by the injured party/proxy and the assessor. If the injured party could not or did not want to be present at the inspection, the assessor must note this in the record;
– on the basis of the submitted documentation and that obtained ex officio, the company determines the legal basis of the damage;
– no later than 60 days from receipt of the claim for compensation, the company must deliver to the injured party:

A reasoned offer if the company’s obligation and the amount of the damage are not disputed;
A reasoned response if the company’s obligation is disputed
A reasoned response if the amount of the damage is disputed

Founded in 1994, a voluntary membership organization of insurance supervisors and regulators from more than 200 jurisdictions, representing 97% of the world’s insurance premiums. It is the international standard-setting body responsible for developing and assisting in the implementation of principles, standards and other supporting material for the supervision of the insurance sector.

The mission of the IAIS is to promote effective and globally consistent supervision of the insurance industry, in order to develop and maintain fair, safe and stable insurance markets for the benefit and protection of policyholders and to contribute to global financial stability.

The Insurance Supervision Agency has been a member of the IAIS since 2010.

The transfer of the risk that exists in our environment from the individual to the insurer (an insurance company) by concluding an insurance contract

An insurance agency company is a legal entity – a joint-stock company with its registered office in the Republic of North Macedonia that carries out insurance agency activities and holds a permit for carrying out insurance agency activities from the Insurance Supervision Agency.

An insurance agent is an individual who holds a license for insurance agent from the Insurance Supervision Agency. The agent carries out the preparation and conclusion of insurance contracts in the name and on behalf of one or more insurance companies established in accordance with this law, for insurance products that do not compete with each other. The insurance agent may also carry out the renewal and termination of insurance contracts on the basis of the consent of the insured. The insurance agent may not collect premiums or other insurance fees from the policyholder in their own name and for their own account.

The person in whose favor the insurance is concluded.

An insurance broker is a person who has obtained a license for insurance broker from the Insurance Supervision Agency. The insurance broker is obliged to protect the interests of the insured, which includes giving the insured explanations and advice on all circumstances relevant to their decision on concluding insurance contracts. The insurance broker is obliged to prepare an adequate risk analysis and propose appropriate insurance coverage for the insured; to inform the insurance company of the insured’s intention to conclude an insurance contract and to acquaint the insured with the policy terms and the regulations governing the determination of the premium amount; and to check the content of the insurance policies and assist the insured during the term of the insurance contract, both before and after the occurrence of the insured event.

An insurance brokerage company is a legal entity – a joint-stock company with its registered office in the Republic of North Macedonia that holds a permit for carrying out insurance brokerage activities from the Insurance Supervision Agency. An insurance brokerage company carries out insurance brokerage activities through insurance brokers.

Insurance business may be carried out by:

• an insurance company with its registered office in the Republic of North Macedonia that holds a permit

to carry out insurance business from the Insurance Supervision Agency;

• a branch of a foreign insurance company that has obtained a permit to carry out insurance business

from the Insurance Supervision Agency; and

• an insurance company from a member state that has established a branch in the territory of the Republic of North Macedonia or is authorized to carry out insurance business directly in the

territory of the Republic of North Macedonia.

An insurance company is a joint-stock company with its registered office in the Republic of North Macedonia that holds a permit from the Insurance Supervision Agency to carry out insurance business.

An insurance company may be established as: 1) an insurance company; 2) a reinsurance company; and 3) an insurance and reinsurance company.

A document that regulates the relationship between the insured and the insurer.

Under the insurance contract, the policyholder undertakes to pay a certain compensation (premium) to the insurer, and the insurer undertakes, if the insured event occurs, to pay the policyholder or a third person a certain sum of money or to do something else.

A form that is completed when the insurance contract is concluded. It must contain all relevant features on the basis of which the subject of the insurance, the sum insured, the insurance premium, the risks against which the subject is insured, and the beginning and end of the insurance contract can be determined.

The insurance premium consists of the technical premium and a part of the premium for carrying out the insurance business. The technical premium is the part of the premium intended for meeting the obligations under insurance contracts

The tariff determines the amount of the premium for the corresponding risk contained in each type of insurance. In general, every tariff contains:

– the subject of the insurance,

– general provisions (premium, bases for calculating the premium, the period for which it is calculated, method of payment…),

– surcharges and discounts,

– individual provisions (bases for tariffing, area of application)

– determination of premium rates.

The insurance terms are the basic instructions for the work of the insurance company. Each type of insurance has corresponding terms under which the insurance is carried out. The terms contain:

• the type of insurance,
• general insurance provisions,
• the start and end of the insurer’s obligation,
• payment of the premium,
• what the subject of the insurance is,
• insured perils (risks),
• calculation of the premium (surcharges, discounts),
• determination (assessment) of the amount of compensation for damage,
• special notes (specifics) for a particular type of insurance…

The insured is an individual or legal entity in whose name the insurance contract is issued, providing coverage against an unwanted risk. In practice, it most often happens that the insured is at the same time the policyholder. There are situations in which other people’s property is exposed to risk, and a third party (the policyholder) has an interest in having it insured. For example, in property insurance the policyholder does not always have to be the owner of the insured property. When insuring an apartment, the policyholder does not have to be the owner of the apartment, because the apartment may be rented out for use over a longer period. In insurance of persons against the consequences of an accident, a parent can insure their children or their spouse.

The event in respect of which the insurance is concluded (the insured event) must be future, uncertain, and independent of the exclusive will of the policyholder. The insurance contract is void if, at the moment of its conclusion, the insured event had already occurred, or was occurring, or it was certain that it would occur, or if the possibility of it occurring had already ceased by then.

If it is agreed that the insurance will cover a certain period preceding the conclusion of the contract, the contract will be void only if, at the moment of its conclusion, the interested party knew that the insured event had already occurred, or that the possibility of it occurring had already ceased.

The insurer is an insurance company that, by concluding an insurance contract, undertakes to pay compensation for damage, that is, to pay the agreed sum of money to the insured.

is a joint-stock company with its registered office in the Republic of North Macedonia that has received a permit from the Securities and Exchange Commission to carry out the establishment and management of investment funds;

is the total number of units in investment funds for one insurance contract;

The key information document (in accordance with the Rulebook

on life insurance linked to units in investment funds, where the insured bears the investment risk) is pre-contractual information and must be accurate, truthful, clear and unambiguous, and consistent in terminology and substance with all binding contractual documents (e.g. the insurance offer, the insurance terms).

The document is clearly separated from the company’s promotional material and must contain the following elements:

1. General information;
2. What are the key features of the product?;
3. What are the risks and expectations from the product?
4. What are the consequences if the company is unable to make a payout?;
5. What are the costs associated with the product, and how much are they?;
6. Options for early termination of the contract and the consequences;
7. Information on submitting objections and complaints; and
8. Other relevant information.

Start of the insurance

Unless otherwise agreed, the insurance contract takes effect from the twenty-fourth hour of the day indicated in the policy as the day the insurance begins, until the end of the last day of the period for which the insurance was agreed. If the duration of the insurance is not determined by contract, either party may terminate the contract on the due date of the premium, notifying the other party in writing no later than 3 months before the due date of the premium. If the contract is concluded for a period longer than 5 years, either party may, after the expiry of that period and with a notice period of 6 months, declare to the other party in writing that it is terminating the contract.

THIS RULE DOES NOT APPLY TO LIFE INSURANCE.

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The Law regulates the compulsory insurance of: a) passengers in public transport against the consequences of an accident; b) owners and users of motor vehicles and trailers; c) passengers, baggage and goods in air traffic, as well as air carriers and aircraft operators; and d) owners and users of ships and motor-powered boats, against liability for damage caused to third parties in traffic, and other issues of importance for compulsory traffic insurance.

This law regulates the conditions under which life insurance, non-life insurance and reinsurance business, insurance agency business and insurance brokerage business may be carried out, the establishment, operation, supervision and termination of operations of insurance and reinsurance companies, insurance brokerage companies and insurance agency companies, as well as the establishment and operation of the Insurance Supervision Agency.

The life insurance premium consists of:

1) a part of the premium as mathematical reserve – the savings part;

2) a part of the premium as risk premium; and

3) a part of the premium as the insurance company’s operating costs.

Insurance of indefinite duration

a person who assesses damage. The assessor examines liability as well as the amount of the payout.

The loss ratio is calculated as the ratio of the claims incurred in the period to the net premium from the insurance

is a surcharge on the premium included in the price list, which the insurer calculates for the insured for an unfavorable ratio between premium and claims; that is, an increase in the premium rate for the insured for the following period if the claims in the agreed previous period significantly exceeded the premium collected.

The management board, that is, the executive directors of an insurance company, are considered to be the management body of an insurance company.

The supervisory board, that is, the non-executive directors of an insurance company, are considered to be the supervisory body of an insurance company.

is a type of technical reserve that is calculated and set aside to cover future obligations under long-term life insurance contracts

“Means of transport” according to the Law on Compulsory Traffic Insurance is a means for the transport of passengers in public traffic, a motor vehicle and a trailer, an aircraft, and a ship or motor-powered boat;

According to the Law on Mediation, mediation is applied in property-law, family, labor, commercial, consumer, insurance disputes, disputes in the field of education, environmental protection, disputes related to discrimination, and in other disputed relations where mediation is suited to the nature of the disputed relations and can help resolve them.

“Mediation” is any intermediation in resolving a disputed relation in a mediation procedure in which the parties to the dispute are enabled to resolve it by negotiation, in a peaceful manner, with the help of one or more licensed mediators, in order to reach a mutually acceptable solution expressed in the form of a written settlement.

Motor third-party liability insurance is a legally compulsory obligation before a vehicle is put into traffic, that is, you need to have it when registering the vehicle. Motor third-party liability covers the liability of the vehicle owner for damage caused to third parties and property when using a motor vehicle in traffic. That is, the damage that the driver (insured under motor third-party liability at the time the damage occurs) causes to a third party will not be at their expense, but will be borne by the insurance company that issued the insurance policy. The annual premium is determined according to the type and characteristics of the motor vehicle, in accordance with the Tariff for compulsory traffic insurance, and with the application of an appropriate bonus for no claims or malus for claims caused in a previous period. In addition to the basic insurance, the motor third-party liability policy can be supplemented with auto accident cover (insurance of the driver and passengers against the consequences of an accident) and auto glass cover (partial casco insurance – glass breakage)

is the value of the assets reduced by the amount of the fund’s liabilities;

is the net asset value of the fund divided by the number of the fund’s units at the moment of calculating the net asset value of the fund;

Obligations arise from the agreement of wills, causing damage to another, unjust enrichment, unauthorized management of another’s affairs, a unilateral declaration of will, and other facts recognized by regulation, a court decision or another body of public authority.

A form in which the data of the person who wishes to conclude insurance and the data on the subject of the insurance are entered.

A person who wishes to conclude an insurance contract with the insurer and for that purpose submits their written offer.

On-site supervision of the operations of companies is a system of procedures and processes

through which the safety, stability, riskiness and compliance of the company with

regulations are determined, applying the internal rules and procedures adopted by

the Agency. On-site supervision is carried out by supervisors.

is a special pool of assets, without legal personality, whose unit holders are entitled to a proportionate share of the fund’s profit and have the right at any time to request payment for their unit, thereby leaving the fund;

Insurance companies are obliged to establish a system, internal procedures and processes for out-of-court resolution of disputes between the insured/insurance beneficiaries and insurance companies.

The insurance company is obliged to rule on a complaint submitted by the insured/policyholder within 30 days of the date the complaint was submitted.

Insurance companies are obliged to state the method of out-of-court dispute resolution in the insurance terms.

Insurance companies are obliged to keep a register of submitted and resolved complaints and to inform the Agency of the number and outcome of the submitted and resolved complaints

Parties to obligations may be individuals and legal entities. The parties are equal and have equal rights, are obliged to cooperate and to adhere to the principle of conscientiousness and honesty, and freely regulate their obligations in accordance with the Constitution, mandatory regulations and good customs (morality).

The penetration rate is calculated as the ratio of gross written premium to gross domestic product.

Permanent off-site supervision of the operations of companies is a system of

procedures and processes based on continuous monitoring of the company’s operations and changes in its operations, through the analysis of the reports and information that the company submits to the Agency in accordance with the Law on Insurance Supervision, the Law on Compulsory Traffic Insurance, the secondary legislation adopted on the basis of these laws, and other regulations.

An insurance company is obliged to obtain a permit from the Insurance Supervision Agency in order to carry out insurance business.

The policyholder can be an individual or a legal entity that concludes an insurance contract with the insurer, undertaking to pay the insurance premium. The policyholder is not entitled to compensation for damage under the insurance, except where they are also the insured. For example, in transport insurance, freight forwarding companies are most often the policyholders in the name and on behalf of the person whose goods are being transported.

The amount that the insured pays to the insurer for bearing a given risk.

The insurance premium consists of the technical premium and a part of the premium for carrying out the insurance business.

The technical premium is the part of the premium intended for meeting the obligations under insurance contracts.

A percentage or per-mille rate by which the premium on the sum insured (a percentage or per-mille calculation) is calculated for the insurance premium for a given risk

is a single price equal to the net asset value of the fund per unit, calculated on the basis of the market price of all securities in the fund’s portfolio

Private health insurance covers the costs of health services that are not covered by compulsory health insurance, a higher standard of the health services arising from compulsory health insurance, the costs of covering health services used in supplementary activity, as well as the use of health services in health institutions outside the network of health institutions in which health activity is carried out and in legal entities that manufacture, issue and service orthopedic and other aids.

The insurance company determines the premium for private health insurance in accordance with the Insurance Terms and the Premium Tariffs for voluntary health insurance.

The unused part of the premium of a policy, which is reversed before the end of the insurance and is credited toward the premium of the newly concluded insurance.

The reasoned offer of compensation must contain:

• the day the claim for compensation was received and the content of the documentation received,
• the number and type of the damage,
• the number of the insurance policy,
• data on the injured party,
• an indication of whether the claim is well founded in full or in part and on what basis the legal basis was determined,
• an explanation of the documentation on the basis of which the basis and the amount of the compensation for the damage were determined,
• the amount of the compensation determined,
• instructions on legal remedies,

“Responsible insurance company” according to the Law on Compulsory Traffic Insurance is the company with which the owner of the means of transport whose use caused the accident has concluded a contract for compulsory insurance;

Legal entities and individuals who carry out business activity, and citizens of the Republic of North Macedonia, are insured at insurance companies established in accordance with the Law on Insurance Supervision.

The risk covered by the insurance (the insured risk) must be future, uncertain and independent of the exclusive will of the policyholder or the insured.

Spreading the risk over time and space.

The insurance company is obliged at all times to have adequate capital in relation to the scope of its business and the classes within which it carries out insurance business, as well as the risks to which it is exposed in carrying out that business.

Safety reserves are funds intended to cover the obligations under insurance contracts over a longer period of time.

Insurance shorter than one year

Solvency II is a regulatory framework for capital adequacy and risk management of insurance companies in the European Union.

The main objectives of “Solvency II” are: greater protection of the interests of policyholders, greater transparency, and greater comparability and competitiveness of insurance services markets in the EU. This regulatory framework takes into account the novelties in the field of risk management, corporate governance and financial reporting in insurance companies.

The process of applying “Solvency II” is carried out through four levels:[2] The first level relates to the “Solvency II” Directive (Directive 2009/138/EC), which, on the proposal of the European Commission and after consulting EIOPA (the European Insurance and Occupational Pensions Authority), was adopted by the European Parliament and the Council of Ministers on May 5, 2009. The application of this directive then proceeded through the drafting of specific measures adopted by the European Commission in October 2014. These measures constitute the second level of application of “Solvency II.” The third level includes the recommendations and principles for conducting supervision that EIOPA adopted in various legal forms by December 2015. During 2015, EU member states adjusted their national legislation in order to harmonize it with the Directive and with EIOPA’s recommendations, and the European Commission supervised that process. In this way the fourth stage in the application of “Solvency II” was completed. The “Solvency II” regulatory regime began to apply in EU member states on January 1, 2016.

“Special Drawing Rights (SDR)” according to the Law on Compulsory Traffic Insurance are special drawing rights (a unit of account) defined by the International Monetary Fund, expressed in the denar equivalent of the National Bank of the Republic of North Macedonia.

It is the day indicated in the policy. For example: the insurance begins on March 10, 2018, starting at 24:00

The sum for which the insurance is written. The sum is determined by the insured.

The Insurance Supervision Agency conducts supervision of insurance companies in order to determine whether the carrying out of insurance business is in accordance with the risk management rules, the other provisions of the Law on Insurance Supervision, or other laws that regulate the operations of insurance companies.

1. Order to remove irregularities;
2. Imposing additional supervisory measures;
3. Revocation of the permit;
4. Introduction of a special administration;
5. Carrying out liquidation of the company;
6. Filing a proposal for opening bankruptcy proceedings against the company

Supplementary health insurance covers the costs of out-of-pocket participation when using health services under compulsory health insurance, in accordance with the regulations on compulsory health insurance and health care.

Supplementary health insurance is established by a supplementary health insurance contract concluded between the insured and the insurance company.

Supplementary health insurance can also be established by a supplementary health insurance contract concluded between the insurance company and an employer for its employees and their family members, associations for their members, or another legal entity that has an interest in insuring a certain group of people.

The supplementary health insurance contract in particular determines the content, manner and conditions for exercising the rights under the supplementary health insurance.

The insurance company determines the premium for supplementary health insurance in accordance with the Insurance Terms and the Premium Tariffs for voluntary health insurance.

supplementary insurance is insurance concluded together with the basic insurance

is the amount paid by the life insurance company upon the early termination of the insurance at the request of the policyholder

the benefit is the value of the investment portfolio upon maturity of the policy

In order to permanently ensure the fulfillment of the obligations under insurance contracts, the insurance company is obliged to form technical reserves, which

consist of:

1) unearned premium reserves;

2) reserves for bonuses and discounts;

3) claims reserves; and 4) other technical reserves.

The duration of validity of the insurance contract (the start and expiry of the insurance)

is a proportionate calculated share of the total value of the investment fund, which depends on the amount of the deposit in the investment fund and the price of one investment unit on the day of investing;

Life insurance in which the investment risk is borne by the insured (unit-linked). Unit-linked is an international term, globally accepted and used for this type of life insurance, meaning that the value of the invested funds depends directly on the market prices of the units of the investment funds in which those funds are invested.

Investing in unit-linked insurance offers a return higher than interest, but cannot exclude the risk of loss that the insured takes on when investing in units of investment funds.

Most of the funds paid in through the premium are invested in units of investment funds that the insured chose themselves when concluding the insurance contract.

is a proportionate calculated share of the total value of the investment fund;

is the product of the total number of units and the price of the unit on the day of calculation;

An insurance contract is void if, at the moment of its conclusion, the insured event had already occurred, or was occurring, or it was certain that it would occur, or if the possibility of it occurring had already ceased by then.

Voluntary health insurance is voluntary and long-term insurance and can be agreed for a duration of at least one year from the start date of the insurance, unless otherwise regulated by law.

Voluntary health insurance is non-life insurance or supplementary insurance to life insurance in accordance with the Law on Insurance Supervision

Voluntary health insurance is carried out by insurance companies that hold a permit from the Insurance Supervision Agency to carry out health insurance business.

A waiting period is a period during the term of the insurance in which, if an insured event occurs, the insurer has no obligation to pay compensation (or has an obligation to pay compensation in an amount lower than the agreed amount).

The insurance contract is concluded when the insurance offer is accepted. The insurance contract is also concluded when the contracting parties sign the insurance policy or the cover note, unless otherwise provided by regulation. The insurance policy may be temporarily replaced by a cover note in which the essential elements of the contract are entered.